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Buy to Let Insurance

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Check what type of buildings and contents cover are required.

Note if you’re insuring a flat it may be that you need only contents insurance and public liability as the freeholder typically insures the building  but you should always check this before you take out any policies.

Know what type of tenant you’re letting to e.g. professional, student.
Check the type of let e.g. short or long term let.
  Know the approximate age and type of build (e.g. brick) of the property you want to insure.
  Know the cost of rebuilding your property(ies). Note this is not the same as the market value.
  Work out what you need to insure in the property e.g. fixtures and fittings and other contents such as washing machines, free-standing fridge freezers etc.
  Check whether the buildings cover includes boiler cover as standard, to pay to repair or replace a broken down boiler.
Understand the cost/benefit of insuring for non-payment of rent by the tenant.
Make sure Public Liability insurance (sometimes also known as Property Owners’ Liability insurance) is included.
Consider if you need cover for malicious damage and theft by tenants.
Check how long the property is covered for if left empty (i.e. no tenants) and if there are any conditions or limits that may apply.
Check whether alternative accommodation cover is included, to rehouse your tenants if the property becomes uninhabitable because of, say, a fire or flood.
Compare insurance cost to the level of cover.
Check if it is more advantageous to have multi property insurance rather than individual policies.
Make sure your property complies with the policy requirements e.g. window locks.
Check whether your floors are built of concrete, timber or both.

 


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